Mario Blejer: “There is no room to break the IMF or anyone else”

The former director of the Central Bank also said that there are interested in the exchange run does not end

The former director of the Central Bank Mario Blejer said that the government “has no margin to breach either the IMF or anyone and said there are” interested in the exchange rate does not end. “

In an interview in the program Political Arc, by Concept FM 95.5, the economist and former head of the BCRA spoke of the exchange rate, the agreement with the IMF and economic activity.

– How do you analyze the latest exchange rate run?

– We have had a strong enough shake. It is a currency problem, not even structural, that uncovered pending problems. It is very difficult to try to adjust the economy gradually with a very large deficit pending. In the model that is using a fiscal deficit financed with cheap debt, the cheap debt ceased to exist, no matter how much we have reclassified the emerging countries had a shock and we, because of dependence on cheap and abundant credit, we staggered the model . This affects the process of growth and investment.
Mario Blejer: “The Government has little place to cut spending”
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– Would not fulfilling the IMF be suicidal?

– International markets are expensive, there are no cheap dollars. When you have to pay a higher rate what you do is slow down growth, and one way to solve Argentina’s problems is with growth. If the economy does not grow, solving poverty and cutting subsidies also becomes difficult. We must rebuild trust because otherwise there is no investment. There is no room to break the IMF, or anyone.
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– Do you see the government of Mauricio Macri with an economic compass?

– I think there was a problem of overgenerating expectations. I do not know who came up with very good expectations. If you promote that everything is arranged in a quarter, if it is proven that this is not the case, a disappointment is generated. Disillusions are worse than a loose expectation. It created a bad attitude from the public.

– Did the run happen?

– You have to do a lot of consistency work. There are factors interested in the exchange run does not end. They are internal, political factors, and that is harmful.